Psychology
Why a refund makes you take bigger risks
HERE’S THE INTERESTING PART
The Pseudocertainty effect is how slick salesmen easily empty your pockets. If an investment is framed as protecting you from losing what you already have, your risk tolerance plummets, but if the exact same gamble is framed as getting your money back, you will gladly risk the farm. Your bravery depends entirely on whether you feel like you are protecting a hoard or chasing a loss.
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